Consolidation in Logistics is where a carrier or a shipping company combines several smaller shipments into one full container. Consolidation can also be referred to as Less Container Load(LCL) or Groupage. To explain in simple terms, consolidation is logistics is where a shipper due to one reason or the other cannot afford to use a full container to convey his goods from one international location to the other. In this case, several shippers make use of the full container. For instance, shipper A may have 500kg of mechanical spares to ship, it will be unwise to use a full container so he opts for a consolidated service.
Cargo consolidation relies on the use of a consolidation warehouse at the point of origin; that is, where the packages are starting out. A clothing store, auto parts store and electronics store may take their packages to a consolidation warehouse, where their smaller packages are combined into one bigger shipment. This consolidated package is then delivered to its destination, where the individual shipments are broken apart and delivered to each intended recipient.
Just like when you buy multiple items from one website to consolidate shipping costs, businesses also enjoy reduced shipping costs – just one of numerous benefits of cargo consolidation. Here are several benefits that make freight consolidation a viable option for small business to grow;
1. Cost Savings:
If your company is a small or medium sized concern, you understand how challenging it is to reach whichever shipping volumes are necessary if you must achieve scale and cost savings in your business. However, these potential challenges can be minimized considerably by aligning your transportation costs with other companies by networking and pooling shipments together, thereby maximizing your cost savings.
2. Supply Chain Consistency: For small or medium sized businesses who have consistent or repetitive orders for their products, they can plan the shipments with reliable freight forwarders and manufacturers to ensure that their goods are sent at specific times. This will greatly benefit the business in terms of cost saving and being able to maintain to the consistency of their supplies.
3. Less exhaustive regulatory procedure:
Customs examinations and releases to individual consignees are done at designated bonded warehouses. What this does is that it saves consignees’ time and the pain of having to go through rigorous port procedures. For instance, if Customs clearance procedure is taking its toll on your profit margin, Consolidation becomes an option. This will not only cut cost and save time as stated earlier but take you through very light and less painful regulatory procedure.
4. Use Edas Global Supply Chain Ltd for your consolidation needs:
Consolidation agent is as important as the decision to stay competitive in your chosen business because you need strategic partnerships with consolidators all over the globe.
Do your shipments require structure, pedigree, and technical expertise to not only manage Consolidated shipments of diverse nature but also provide well-informed advice on possible outcomes?
If yes, take advantage of the consolidation services provided by Edas Global Supply Chain Limited, not only to keep your business momentum but also to move your business to the next level.
Reach out to us today via info@edasglobalsupplychain.com or call +2347089921886, and we will be glad to work with you.